Canadian Dollar FX Morning Update September 18, 2015
USD/CAD Open: 1.3043-1.3044 Overnight Range: 1.3011-1.3186
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.58 and gold is at $1,137. US futures are lower. Today, Canada releases CPI data for the month of August.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3154. Support is at 1.2961.
The Canadian dollar has gained considerable strength in the wake of yesterday’s FOMC meeting. The Fed decided leave rates unchanged, spurring significant market volatility. The Canadian dollar had made large gains immediately following the announcement, retraced the gains towards the end of the day, and then made the gains back this morning. Based on Fed sentiment, a 2015 rate hike is still firmly in play. With the US labour market looking healthy, inflation will be the Fed’s key metric for a rate hike, as it is the other part of the Fed’s dual mandate. The Fed additionally expressed concerns over the global economic outlook.
In Canada, CPI data this morning was in line with expectations of YOY growth of 1.3%. Inflation in Canada remains below the BoC’s target of 2%, and it will continue to be a focal point throughout the rest of 2015. Look for relative monetary policy as well as oil prices to continue to be the main drivers of the Canadian dollar in the medium term.
Today’s Suggested Range USD/CAD: 1.2950 – 1.3150
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
Knightsbridge Foreign Exchange has based the opinions expressed herein on information generally available to the public. Knightsbridge Foreign Exchange makes no warranty concerning the accuracy of this information and specifically disclaims any liability for trading decisions based on the opinions expressed and information contained herein. Such information and opinions are for general information only and are not intended to present advice with respect to matters reviewed and commented upon.
By Admin | September 18, 2015 | Daily Update | 0 comments